Stansted runway threatens budget fares

Last updated at 10:50 04 December 2003

The future of budget airlines continuing to offer cheap fares is under threat if the Government, as expected, chooses to expand Stansted airport with another runway. It is believed that the cost of developing Stansted would mean take-off and landing charges for airlines would have to soar by about 70 per cent.

The increase would hit hard pioneering low-fare airlines such as Ryanair and easyJet which have made Stansted their main European base because of the lower cost of flying from the Essex airport compared with Heathrow and Gatwick.

Indications that the Governmenthas decided to relieve congestion at South-East airports by expanding Stansted has caused a furore with Heathrow-based airlines British Airways and Virgin Atlantic.

They would prefer expansion at Heathrow and argue that their high take-off and landing charges at what is the world's busiest international airport will be used by airport operator BAA to subsidise expansion at Stansted, which it also owns.